Integrating the Financial Close Process in an M&A Environment: Follow the Complete Journey of a Merger or Acquisition - Emtec, Inc

Emtec, Inc. Proprietary & Confidential. All rights reserved 2014.Emtec, Inc. Proprietary & Confidential. All rights reserved 2014.Emtec, Inc. Proprietary & Confidential. All rights reserved 2014.Emtec, Inc. Proprietary & Confidential. All rights reserved 2014.

Integrating the Financial Close Process in an M&A

Environment

Russ Rogers

Reid Kerr

May 12, 2015


Agenda

2

Introductions

What’s wrong with the Close Process?

What is Oracle’s Hyperion FCM?

Process Elements

Demonstration

New Features

FCM Next Steps

Q & A


Introductions


Introductions

4

Reid Kerr

Senior Lead – Close & Consolidations, Emtec

• 21 Years of hands on consulting experience

• 8 Years at Hyperion (IMRS, Software, Solutions, etc.)

• 12 Years Partner and Independent Firms

• Hyperion Certified (background in accounting, fx, m&a)

• 336-996-4242 office / 336-210-6934 mobile (Go TarHeels!)

• [email protected]

Russ Rogers

National Practice Lead – Close & Consolidations, Emtec

• 22 Years of hands on consulting experience

• 9 Years at Hyperion (IMRS, Software, Solutions, etc.)

• 12 Years Partner and Independent Firms

• CPA, CMA, Hyperion Certified (accounting, fx, IC, m&a)

• 312-561-3398 office / 816-721-1908 mobile (Go Jayhawks!)

• [email protected]


Introductions

5

Emtec Functional Experience

• Over 400 applications across multitude of

Hyperion products

• Practical experience as well as technical

expertise across all industries

Emtec Technical Experience

• In-house technical group – led by Luis

Castillo

• Experience across the breadth of Oracle’s

EPM suite

A Cohesive team supporting your Oracle

Applications





7

• Most close cycle processes are handled off-line

- Excel spreadsheets keep track of what should be done

- Constant e-mail exchanges are conducted

- Phone calls used for e-mail backup

- Difficult to anticipate when things are due/done

- Subsidiaries will sometimes operate on different schedules

- Limited visibility into Subsidiary activities until email received

- Limited centralization of close cycle activities

- No automated means to external applications/processes

• All of these incur cost for the organization in time and money



8

• Manual reporting/monitoring is done

- Updates/status reports if any are generated manually and

typically not comprehensive

- Corporate has limited if any visibility into supporting activities

- One fire drill after another

- Process improvements are difficult to implement/track

These items take time away from analysis

These take time away from schedule

These take human cost to perform the follow up

These take human cost to monitor


But Wait, how does this relate to M & A activities?


Wait, how does this relate to M & A activities?

10

With the various issues facing an internal close process, this is

complicated many times over with the merger/acquisition of a new

company

• New Company

- Learn new processes

- Update new contacts

- Fit square peg/round hole

• Existing company

- Need smooth transition

- Introduce to existing methodology

- Give guidance/insight on Closing process

Need to bring people up to speed in the least cost/time/effort


What is Oracle’s Hyperion Financial Close Management ?



12

Oracle’s Hyperion Financial Close Management (FCM) product is

one of two modules** that make up the Oracle Hyperion Financial

Close Management Suite. FCM is used to document, track, monitor

and bring together the close process. FCM is a web-based tool that

centralizes the close process.

• Removes the black box effect

• Lists steps (tasks) and assignment of responsibilities

• Identifies dependencies and connections between tasks

• Integrates with other activities within the close process (i.e.

Operational, Consolidation and Reporting)

• Allows due dates and automatic notifications of tasks completion

**Note: The second module is Account Reconciliation



13

• Allows template creation for repetitive process across months,

quarters and year end

• Allows primary and supporting tasks to be tracked

• Tracks issues (system, process, entries) during the close process

for notation and documentation.

• Monitors the close process via prebuilt dashboards, reports and

graphs


How does this help with M & A activities


How does this help with M & A activities?

15

• Provides a process to follow

• New companies know what to expect and when

• Tasks/Responsibilities can be easily set up and monitored

• Bottlenecks are quickly identified

• On going monitoring is easily incorporated


Process Elements


Process Elements

17

Financial Close Management Build

Provides links to other

products and allows

specific actions/

monitoring to take

place (similar to

adaptors/add-ons).

Some examples

would be

• Run a

consolidation in

HFM

• Run transaction

report

Relates to a

specific steps

taken either

automated and

manual.

Some examples

would be

• Load FX

rates,

• Complete

Minority

interest entry

Collection of

tasks which are

related.

Some examples

would be:

• Corporate

Month End

tasks

• Tax

department

tasks

Collection of

templates that

relate to a

closing

schedule

Some examples

would be:

• Monthly,

• Quarterly,

• Year End


Process Elements

18

• Integrations provide the “link” to

external products/tools

• These links can be used to run

processes for both ledgers and

sub ledgers along with the Hyperion

Suite of products

• Some examples of integrations are approving journals, loading and

consolidating data, running task list and reports along opening and closing

periods

Integrations


Process Elements

19

• Tasks are individual

steps used in the

close process

• Tasks can be

manual or automatic.

Automatic steps use integrations to perform task (i.e. load data). Manual steps

list the tasks to be undertaken (i.e. gather accruals for entry)


Process Elements

20

• Templates are a

collection of related

Tasks

• Templates provide a

reusable framework

for the tasks


Process Elements

21

• Schedules join

together one or

more templates

• The users

interact with

schedules

• Schedules have a one time use and provide monitoring/recording to the close

process


Process Elements

22

Financial Close Management Build


Demonstration


Demonstration

24

Simple Close Process


New Features


New Features

If you are currently on FCM 11.1.2.1

• Up to 2000 tasks can be assigned in one schedule

• Bulk reassignments are introduced

• "At Risk" status is introduced


• Oracle Browser Look and Feel (BLAF+) compliant

• Documentation certified on Apple Mobile Devices

• Actual Time to Complete in the Task list, Gantt View and BI dashboards


• Bulk reassignments are introduced

• Number of approvers can be specified

• The 2,000 task per schedule limit is removed

• Close Manager mobile app users can submit and approve tasks

26


New Features

If you are currently on FCM 11.1.2.3 (cont.)

• Task assignees can request reassignment of functions with approval by

administrator

• Actions on multiple tasks (submit, approve, reject) can be done in one step

• New integrations for Event Monitoring tasks (Journal entry, AR, AP,

Purchasing and EBS sub ledger Open/Close events)

• Further integrated with Account Reconciliation

27


FCM Next Steps


FCM Next Steps

29

Virtual Assessment – Free Offering

• 4 hour exercise completed by senior architects

• Information collected and questionnaire completed prior to session

• 2 hour collaboration virtually to understand your implementation and

needs and deliver findings

• Deliverables include documented upgrade considerations, broad cost and

effort estimate, and timeline

Reach out to your Emtec Field Sales Account Executives or Inside

Sales Development Mangers. Feel free to contact us to engage directly.


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Questions?

Send your questions to Reid Kerr and Russ Rogers

[email protected]

[email protected]

mailto:[email protected]

mailto:[email protected]


THANK YOU FOR YOUR TIME

Please visit us online at www.emtecinc.com

THANK YOU FOR YOUR TIME

Please visit us online at www.emtecinc.com

http://www.emtecinc.com/

http://www.emtecinc.com/